Combine Grants and Capital Campaigns for a Perfect Partnership and Sustainable Revenue

Grants and capital campaigns are rarely seen as linked activities within a nonprofit’s strategic financial plan. Capital campaigns, which are complex marketing efforts that many leaders design, approve and oversee fully engage the CEO/president, advancement team, volunteers and other constituents. Grants are often relegated to either additional revenue that is project-based or, in higher education, as research. 

Most often, grant applications are separate from the goal of sustainable revenue because receiving grants can be an uncertainty. The result is that fundraising campaigns and grants operate in silos. On the organizational chart, the two threads often don’t intertwine. This is a missed opportunity and ignores a tremendous opening for nonprofits due to the way today’s funders want to make an impact.

In fact, grants and fundraising campaigns are interwoven elements that can assure an organization or institution’s long-term financial sustainability. Together they are what the military and business refer to as a “force multiplier” — a tool, tactic or process that increases effectiveness without needing to expend additional time, energy, resources or attention. 

As we know, a hammer is better at driving a nail with the same arm motion than your fist. A loan can finance the retooling of a factory in fewer market time cycles than an accumulated profit fund. Many nonprofits, particularly those in higher education, are struggling to make ends meet with increased costs and a tight labor market.

Grants and Fundraising Campaigns Are a Force Multiplier for Your Cause

Integrating grant pursuits with a well-structured capital campaign can help an institution move beyond just raising money to elevating its profile and furthering its mission. Getting big grants can amplify donor excitement, and a strong capital campaign tells funders they are placing investment in an institution that is on the rise.

A well-devised strategic plan that interweaves both revenue streams allows your organization to chart its financial future. A key to sustainable revenue is diversifying funding. This helps your organization to weather difficult economic cycles (like today's massive inflation and the current “enrollment cliff” in education). They can also help weather potential political shocks. 

The force multiplier approach is also a way to foster donor trust. Increasingly, donors are thinking strategically about their philanthropic investments. They’ll appreciate it when they hear you’re also thinking strategically about your funding streams.

Including Grants in Your Campaign Strategy Diversifies Your Donor Engagement

Capital campaigns vary in their focus. The construction of new buildings, start of new community initiatives, support for key programs, and aid to constituents are frequent beneficiaries. Grants can amplify those efforts, boosting programs, data collection and even workforce development efforts. 

To supporters with strong emotional ties, grant awards complement fundraising by confirming that an organization’s mission is consistent with changing trends and prevailing issues. They signal approval from organizations like the United Way, Chambers of Commerce, National Science Foundation, National Institutes of Health, as well as the departments of Defense, Homeland Security, State, Energy, Agriculture, Commerce and Education.

Further, through grant awards, individual donors and foundations have additional guarantees that their contributions are put to good work. Government underwriting and reporting requirements also affirms that a program is justifiable and assures against fraud and misallocation of funds. This compliance reporting can and should be shared with donors. Such co-branding of private sector foundations, individual donors, individual supporters and government is a powerful tool to build donor confidence. There is just no reason to think of them as separate.

I recommend that you plan to include grant success in your fundraising campaign marketing. It will strengthen and build brand loyalty. On a mission level, grants also provide your team with exposure, opportunities for publication and even careers boosted by your organization. The grant writers should be on your campaign team in the same way that program leaders, arts, community engagement, athletics and student affairs team members are.

Think Smarter About Grants and Donors

Nonprofits are under extreme pressure. Organizations in today’s setting must address an evolving array of challenges in a dynamic funding environment. Costs are up, competition for resources are high and disruptive technologies are changing everything we do. This is a lot to face for nonprofit leaders. 

My recommendation: The best way to overcome a new wave is to get ahead of it. Reimagine your revenue plan by embracing grants and donations as two sides of the same coin. This is a formula for both shock-resistant sustainability and long term growth. A combined donor and grant strategy eases pressure for the CEO/president and fundraisers. It also frees up resources. 

Grants and fundraising campaigns can work together. A single hammer in the clasp of two able hands is far more effective than multiple bare fists when you need to drive a spike to secure the sustainability of your organization.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.